**Point Estimates


**CHOSE INSTRUMENTS + SPEC
global Zbase = "lag_l lag_m lag_e lag_D_ln_micro_inv lag_D_micro_inv lag_I_sq_micro_inv lag_I_sq_micro_inv_D lag_I_sq_lm lag_I_sq_le lag_I_sq_me lag_I_sq_micro_inv_km lag_I_sq_micro_inv_D_km lag_I_sq_micro_inv_ke lag_I_sq_micro_inv_D_ke"
global ZnonX_base = "lag_D_ln_micro_inv lag_D_micro_inv lag_I_sq_micro_inv lag_I_sq_micro_inv_D lag_I_sq_micro_inv_km lag_I_sq_micro_inv_D_km lag_I_sq_micro_inv_ke lag_I_sq_micro_inv_D_ke"
global INS =  "dm_lag_q_m dm_lag_l dm_lag_m dm_lag_e dm_lag_D_ln_micro_inv dm_lag_D_micro_inv dm_lag_I_sq_micro_inv dm_lag_I_sq_micro_inv_D dm_lag_I_sq_lm dm_lag_I_sq_le dm_lag_I_sq_me dm_lag_I_sq_micro_inv_km dm_lag_I_sq_micro_inv_D_km dm_lag_I_sq_micro_inv_ke dm_lag_I_sq_micro_inv_D_ke"
global spec = "new_klme"

local spec = "$spec"
	
clear all
use "$working/prowess_wits_estimation_qonly_klme.dta", clear
		
xtset product_id year
			
foreach v in q_m k l m e I_sq ln_shares ln_IND ln_IVS ///
	D_ln_micro_inv D_micro_inv D_ln_inv_base D_inv_base ///
	k_alt I_sq_micro_inv I_sq_micro_inv_D I_sq_inv_base I_sq_inv_base_D  ///
	I_sq_km I_sq_lm I_sq_le I_sq_ke I_sq_me ///
	I_sq_micro_inv_km I_sq_micro_inv_D_km I_sq_inv_base_km I_sq_inv_base_D_km ///
	I_sq_micro_inv_ke I_sq_micro_inv_D_ke I_sq_inv_base_ke I_sq_inv_base_D_ke ///
	ln_wIPT_IND_CHN  {
		gen lag_`v' = L.`v'
}
			
foreach v in q_m k l m e I_sq I_sq_km I_sq_lm I_sq_le I_sq_ke I_sq_me ln_shares ln_IND ln_IVS ln_wIPT_IND_CHN {
		drop if lag_`v'==. | `v'==.
	}
			
foreach v in  $Zbase {
	drop if `v'==.
}
			
bysort year: gen total_year_obs = _N
drop if total_year_obs==1
			
quietly tabulate year, generate(year_fe)
			
generate everyone = 1
			
unique year, by(everyone) generate(total_years)
sum total_years
local count_year_fe = r(mean)
			
			
foreach v in q_m lag_q_m k lag_k l lag_l m lag_m e lag_e I_sq lag_I_sq ///
	ln_shares lag_ln_shares ln_IND ln_IVS lag_ln_IND lag_ln_IVS ///
	I_sq_km I_sq_lm I_sq_le I_sq_ke I_sq_me lag_I_sq_km lag_I_sq_lm lag_I_sq_le lag_I_sq_ke lag_I_sq_me ln_wIPT_IND_CHN lag_ln_wIPT_IND_CHN  {
				egen mean_`v' = mean(`v'), by(up12)
				gen dm_`v' = `v' - mean_`v'
}
			
foreach v in $ZnonX_base {
	egen mean_`v' = mean(`v'), by(up12)
	gen dm_`v' = `v' - mean_`v'
}
			
			
forvalues i = 1(1)`count_year_fe' {
	egen mean_year_fe`i' = mean(year_fe`i'), by(up12)
	gen dm_year_fe`i' = year_fe`i' - mean_year_fe`i'
}
					
gmm (dm_q_m - {rho=0.9}*dm_lag_q_m - {beta_l=0.1}*(dm_l + dm_ln_shares) + {rho}*{beta_l}*(dm_lag_l + dm_lag_ln_shares) ///
		- {beta_k=0.1}*(dm_k+ dm_ln_shares) + {rho}*{beta_k}*(dm_lag_k+ dm_lag_ln_shares) ///
		- {beta_m=0.7}*(dm_m+ dm_ln_shares) + {rho}*{beta_m}*(dm_lag_m+ dm_lag_ln_shares) ///
		- {beta_e=0.1}*(dm_e+ dm_ln_shares) + {rho}*{beta_e}*(dm_lag_e+ dm_lag_ln_shares) ///
		- {beta_lk=0}*dm_I_sq + {rho}*{beta_lk}*dm_lag_I_sq ///
		- {beta_km=0}*dm_I_sq_km + {rho}*{beta_km}*dm_lag_I_sq_km ///
		- {beta_lm=0}*dm_I_sq_lm + {rho}*{beta_lm}*dm_lag_I_sq_lm ///
		- {beta_le=0}*dm_I_sq_le + {rho}*{beta_le}*dm_lag_I_sq_le ///
		- {beta_ke=0}*dm_I_sq_ke + {rho}*{beta_ke}*dm_lag_I_sq_ke ///
		- {beta_me=0}*dm_I_sq_me + {rho}*{beta_me}*dm_lag_I_sq_me ///
		-{xb: dm_year_fe* dm_lag_ln_IND dm_lag_ln_wIPT_IND_CHN}), ///
		instruments($INS dm_year_fe* dm_lag_ln_IND dm_lag_ln_wIPT_IND_CHN, nocons) onestep quickderivatives technique(bfgs) vce(cluster co_code)
predict resid, residuals 

gen rho_hat = [rho]_cons
gen rho_hat_se = _se[rho:_cons]
		
gen beta_k_hat_q = [beta_k]_cons
gen beta_l_hat_q = [beta_l]_cons
gen beta_m_hat_q = [beta_m]_cons
gen beta_e_hat_q = [beta_e]_cons
		
gen beta_lk_hat_q = [beta_lk]_cons
gen beta_km_hat_q = [beta_km]_cons
gen beta_lm_hat_q = [beta_lm]_cons
gen beta_le_hat_q = [beta_le]_cons
gen beta_ke_hat_q = [beta_ke]_cons
gen beta_me_hat_q = [beta_me]_cons
		
gen beta_k_hat_q_se = _se[beta_k:_cons]
gen beta_l_hat_q_se = _se[beta_l:_cons]
gen beta_m_hat_q_se = _se[beta_m:_cons]
gen beta_e_hat_q_se = _se[beta_e:_cons]
		
gen beta_lk_hat_q_se = _se[beta_lk:_cons]
gen beta_km_hat_q_se = _se[beta_km:_cons]
gen beta_lm_hat_q_se = _se[beta_lm:_cons]
gen beta_le_hat_q_se = _se[beta_le:_cons]
gen beta_ke_hat_q_se = _se[beta_ke:_cons]
gen beta_me_hat_q_se = _se[beta_me:_cons]
		
gen beta_lag_ln_IND = _b[xb:dm_lag_ln_IND]
gen beta_lag_ln_IND_se = _se[xb: dm_lag_ln_IND]

gen beta_lag_MA = _b[xb: dm_lag_ln_wIPT_IND_CHN]
gen beta_lag_MA_se = _se[xb: dm_lag_ln_wIPT_IND_CHN]
		
generate rts = beta_k_hat_q + beta_l_hat_q + beta_m_hat_q + beta_e_hat_q
		
lincom [beta_k]_cons+[beta_l]_cons +[beta_m]_cons + [beta_e]_cons
generate rts_se = r(se)
		
gen theta_k_hat_q= beta_k_hat_q + beta_lk_hat_q*(l - k) + beta_km_hat_q*(m - k) + beta_ke_hat_q*(e - k)
gen theta_l_hat_q = beta_l_hat_q + beta_lk_hat_q*(k - l) + beta_lm_hat_q*(m - l) + beta_le_hat_q*(e - l)
gen theta_m_hat_q = beta_m_hat_q + beta_km_hat_q*(k - m) + beta_lm_hat_q*(l - m) + beta_me_hat_q*(e - m)
gen theta_e_hat_q = beta_e_hat_q + beta_le_hat_q*(l - e) + beta_ke_hat_q*(k - e) + beta_me_hat_q*(m - e)
		
foreach variable in k_hat_q l_hat_q m_hat_q e_hat_q {
	sum theta_`variable', detail
	generate theta_`variable'_mean = r(mean)
	generate theta_`variable'_med = r(p50)
	generate theta_`variable'_sd = r(sd)
}

xtset product_id year
generate lag_resid = L.resid
reg resid lag_resid, cluster(co_code1)
generate perc_test = _b[lag_resid]
generate se_perc_test = _se[lag_resid]
		
contract nic_08_2dig rho_hat rho_hat_se beta_k_hat_q beta_l_hat_q beta_m_hat_q beta_e_hat_q /// 
beta_lk_hat_q beta_km_hat_q beta_lm_hat_q beta_le_hat_q beta_ke_hat_q beta_me_hat_q ///
beta_lag_ln_IND beta_lag_ln_IND_se ///
theta_k_hat_q_mean theta_k_hat_q_med theta_l_hat_q_mean theta_l_hat_q_med ///
theta_m_hat_q_mean theta_m_hat_q_med theta_e_hat_q_mean theta_e_hat_q_med  ///
theta_k_hat_q_sd theta_l_hat_q_sd theta_m_hat_q_sd theta_e_hat_q_sd rts rts_se ///
 beta_k_hat_q_se beta_l_hat_q_se beta_m_hat_q_se beta_e_hat_q_se /// 
beta_lk_hat_q_se beta_km_hat_q_se beta_lm_hat_q_se beta_le_hat_q_se beta_ke_hat_q_se beta_me_hat_q_se beta_lag_MA beta_lag_MA_se ///
perc_test se_perc_test
		
rename _freq Observations

save "$working/full_ProdQ_`spec'_L1", replace


global Zbase = "lag_l lag_m lag_e lag_D_ln_micro_inv lag_D_micro_inv lag_I_sq_micro_inv lag_I_sq_micro_inv_D lag_I_sq_lm lag_I_sq_le lag_I_sq_me lag_I_sq_micro_inv_km lag_I_sq_micro_inv_D_km lag_I_sq_micro_inv_ke lag_I_sq_micro_inv_D_ke  lag2_l lag2_m lag2_e lag2_D_ln_micro_inv lag2_D_micro_inv lag2_I_sq_micro_inv lag2_I_sq_micro_inv_D lag2_I_sq_lm lag2_I_sq_le lag2_I_sq_me lag2_I_sq_micro_inv_km lag2_I_sq_micro_inv_D_km lag2_I_sq_micro_inv_ke lag2_I_sq_micro_inv_D_ke"
global ZnonX_base = "lag_D_ln_micro_inv lag_D_micro_inv lag_I_sq_micro_inv lag_I_sq_micro_inv_D lag_I_sq_micro_inv_km lag_I_sq_micro_inv_D_km lag_I_sq_micro_inv_ke lag_I_sq_micro_inv_D_ke lag2_D_ln_micro_inv lag2_D_micro_inv lag2_I_sq_micro_inv lag2_I_sq_micro_inv_D lag2_I_sq_micro_inv_km lag2_I_sq_micro_inv_D_km lag2_I_sq_micro_inv_ke lag2_I_sq_micro_inv_D_ke"
global INS =  "dm_lag_q_m dm_lag2_q_m dm_lag_l dm_lag_m dm_lag_e dm_lag_D_ln_micro_inv dm_lag_D_micro_inv dm_lag_I_sq_micro_inv dm_lag_I_sq_micro_inv_D dm_lag_I_sq_lm dm_lag_I_sq_le dm_lag_I_sq_me dm_lag_I_sq_micro_inv_km dm_lag_I_sq_micro_inv_D_km dm_lag_I_sq_micro_inv_ke dm_lag_I_sq_micro_inv_D_ke dm_lag2_l dm_lag2_m dm_lag2_e dm_lag2_D_ln_micro_inv dm_lag2_D_micro_inv dm_lag2_I_sq_micro_inv dm_lag2_I_sq_micro_inv_D dm_lag2_I_sq_lm dm_lag2_I_sq_le dm_lag2_I_sq_me dm_lag2_I_sq_micro_inv_km dm_lag2_I_sq_micro_inv_D_km dm_lag2_I_sq_micro_inv_ke dm_lag2_I_sq_micro_inv_D_ke"
local spec = "new_klme"
	
clear all
use "$working/prowess_wits_estimation_qonly_klme.dta", clear
		
xtset product_id year
			
foreach v in q_m k l m e I_sq ln_shares ln_IND ln_IVS ///
	D_ln_micro_inv D_micro_inv D_ln_inv_base D_inv_base ///
	k_alt I_sq_micro_inv I_sq_micro_inv_D I_sq_inv_base I_sq_inv_base_D  ///
	I_sq_km I_sq_lm I_sq_le I_sq_ke I_sq_me ///
	I_sq_micro_inv_km I_sq_micro_inv_D_km I_sq_inv_base_km I_sq_inv_base_D_km ///
	I_sq_micro_inv_ke I_sq_micro_inv_D_ke I_sq_inv_base_ke I_sq_inv_base_D_ke ///
	ln_wIPT_IND_CHN  {
		gen lag_`v' = L.`v'
		gen lag2_`v' = L2.`v'
}
			
foreach v in q_m k l m e I_sq I_sq_km I_sq_lm I_sq_le I_sq_ke I_sq_me ln_shares ln_IND ln_IVS ln_wIPT_IND_CHN {
		drop if lag_`v'==. | `v'==. | lag2_`v'==.
	}
			
foreach v in  $Zbase {
	drop if `v'==.
}
			
bysort year: gen total_year_obs = _N
drop if total_year_obs==1
			
quietly tabulate year, generate(year_fe)
			
generate everyone = 1
			
unique year, by(everyone) generate(total_years)
sum total_years
local count_year_fe = r(mean)
			
			
foreach v in q_m lag_q_m lag2_q_m k lag_k lag2_k l lag_l lag2_l m lag_m lag2_m e lag_e lag2_e I_sq lag_I_sq lag2_I_sq ///
	ln_shares lag_ln_shares lag2_ln_shares ln_IND ln_IVS lag_ln_IND lag_ln_IVS ///
	I_sq_km I_sq_lm I_sq_le I_sq_ke I_sq_me lag_I_sq_km lag_I_sq_lm lag_I_sq_le lag_I_sq_ke lag_I_sq_me ln_wIPT_IND_CHN lag_ln_wIPT_IND_CHN ///
	lag2_I_sq_km lag2_I_sq_lm lag2_I_sq_le lag2_I_sq_ke lag2_I_sq_me lag2_ln_IND lag2_ln_wIPT_IND_CHN {
				egen mean_`v' = mean(`v'), by(up12)
				gen dm_`v' = `v' - mean_`v'
}
			
foreach v in $ZnonX_base {
	egen mean_`v' = mean(`v'), by(up12)
	gen dm_`v' = `v' - mean_`v'
}
			
			
forvalues i = 1(1)`count_year_fe' {
	egen mean_year_fe`i' = mean(year_fe`i'), by(up12)
	gen dm_year_fe`i' = year_fe`i' - mean_year_fe`i'
}
		

gmm (dm_q_m - {rho=0.9}*dm_lag_q_m - {rho2=0.05}*dm_lag2_q_m - {beta_l=0.1}*(dm_l + dm_ln_shares) + {rho}*{beta_l}*(dm_lag_l + dm_lag_ln_shares) + {rho2}*{beta_l}*(dm_lag2_l + dm_lag2_ln_shares) ///
		- {beta_k=0.1}*(dm_k+ dm_ln_shares) + {rho}*{beta_k}*(dm_lag_k+ dm_lag_ln_shares) + {rho2}*{beta_k}*(dm_lag2_k+ dm_lag2_ln_shares) ///
		- {beta_m=0.7}*(dm_m+ dm_ln_shares) + {rho}*{beta_m}*(dm_lag_m+ dm_lag_ln_shares) + {rho2}*{beta_m}*(dm_lag2_m+ dm_lag2_ln_shares) ///
		- {beta_e=0.1}*(dm_e+ dm_ln_shares) + {rho}*{beta_e}*(dm_lag_e+ dm_lag_ln_shares)  + {rho2}*{beta_e}*(dm_lag2_e+ dm_lag2_ln_shares) ///
		- {beta_lk=0}*dm_I_sq + {rho}*{beta_lk}*dm_lag_I_sq + {rho2}*{beta_lk}*dm_lag2_I_sq ///
		- {beta_km=0}*dm_I_sq_km + {rho}*{beta_km}*dm_lag_I_sq_km + {rho2}*{beta_km}*dm_lag2_I_sq_km ///
		- {beta_lm=0}*dm_I_sq_lm + {rho}*{beta_lm}*dm_lag_I_sq_lm + {rho2}*{beta_lm}*dm_lag2_I_sq_lm ///
		- {beta_le=0}*dm_I_sq_le + {rho}*{beta_le}*dm_lag_I_sq_le + {rho2}*{beta_le}*dm_lag2_I_sq_le ///
		- {beta_ke=0}*dm_I_sq_ke + {rho}*{beta_ke}*dm_lag_I_sq_ke + {rho2}*{beta_ke}*dm_lag2_I_sq_ke ///
		- {beta_me=0}*dm_I_sq_me + {rho}*{beta_me}*dm_lag_I_sq_me  + {rho2}*{beta_me}*dm_lag2_I_sq_me ///
		-{xb: dm_year_fe* dm_lag_ln_IND dm_lag_ln_wIPT_IND_CHN dm_lag2_ln_IND dm_lag2_ln_wIPT_IND_CHN}), ///
		instruments($INS dm_year_fe* dm_lag_ln_IND dm_lag_ln_wIPT_IND_CHN dm_lag2_ln_IND dm_lag2_ln_wIPT_IND_CHN, nocons) onestep quickderivatives technique(bfgs) vce(cluster co_code)


		
predict resid, residuals 
	
gen rho_hat = [rho]_cons
gen rho_hat_se = _se[rho:_cons]

gen rho_hat2 = [rho2]_cons
gen rho_hat2_se = _se[rho2:_cons]
		
gen beta_k_hat_q = [beta_k]_cons
gen beta_l_hat_q = [beta_l]_cons
gen beta_m_hat_q = [beta_m]_cons
gen beta_e_hat_q = [beta_e]_cons
		
gen beta_lk_hat_q = [beta_lk]_cons
gen beta_km_hat_q = [beta_km]_cons
gen beta_lm_hat_q = [beta_lm]_cons
gen beta_le_hat_q = [beta_le]_cons
gen beta_ke_hat_q = [beta_ke]_cons
gen beta_me_hat_q = [beta_me]_cons
		
gen beta_k_hat_q_se = _se[beta_k:_cons]
gen beta_l_hat_q_se = _se[beta_l:_cons]
gen beta_m_hat_q_se = _se[beta_m:_cons]
gen beta_e_hat_q_se = _se[beta_e:_cons]
		
gen beta_lk_hat_q_se = _se[beta_lk:_cons]
gen beta_km_hat_q_se = _se[beta_km:_cons]
gen beta_lm_hat_q_se = _se[beta_lm:_cons]
gen beta_le_hat_q_se = _se[beta_le:_cons]
gen beta_ke_hat_q_se = _se[beta_ke:_cons]
gen beta_me_hat_q_se = _se[beta_me:_cons]
		
gen beta_lag_ln_IND = _b[xb:dm_lag_ln_IND]
gen beta_lag_ln_IND_se = _se[xb: dm_lag_ln_IND]

gen beta_lag_MA = _b[xb: dm_lag_ln_wIPT_IND_CHN]
gen beta_lag_MA_se = _se[xb: dm_lag_ln_wIPT_IND_CHN]

gen beta_lag2_ln_IND = _b[xb:dm_lag2_ln_IND]
gen beta_lag2_ln_IND_se = _se[xb: dm_lag2_ln_IND]

gen beta_lag2_MA = _b[xb: dm_lag2_ln_wIPT_IND_CHN]
gen beta_lag2_MA_se = _se[xb: dm_lag2_ln_wIPT_IND_CHN]
		
generate rts = beta_k_hat_q + beta_l_hat_q + beta_m_hat_q + beta_e_hat_q
		
lincom [beta_k]_cons+[beta_l]_cons +[beta_m]_cons + [beta_e]_cons
generate rts_se = r(se)
		
gen theta_k_hat_q= beta_k_hat_q + beta_lk_hat_q*(l - k) + beta_km_hat_q*(m - k) + beta_ke_hat_q*(e - k)
gen theta_l_hat_q = beta_l_hat_q + beta_lk_hat_q*(k - l) + beta_lm_hat_q*(m - l) + beta_le_hat_q*(e - l)
gen theta_m_hat_q = beta_m_hat_q + beta_km_hat_q*(k - m) + beta_lm_hat_q*(l - m) + beta_me_hat_q*(e - m)
gen theta_e_hat_q = beta_e_hat_q + beta_le_hat_q*(l - e) + beta_ke_hat_q*(k - e) + beta_me_hat_q*(m - e)
		
foreach variable in k_hat_q l_hat_q m_hat_q e_hat_q {
	sum theta_`variable', detail
	generate theta_`variable'_mean = r(mean)
	generate theta_`variable'_med = r(p50)
	generate theta_`variable'_sd = r(sd)
}

xtset product_id year
generate lag_resid = L.resid
reg resid lag_resid, cluster(co_code1)
generate perc_test = _b[lag_resid]
generate se_perc_test = _se[lag_resid]

		
contract nic_08_2dig rho_hat rho_hat_se  rho_hat2 rho_hat2_se beta_k_hat_q beta_l_hat_q beta_m_hat_q beta_e_hat_q /// 
beta_lk_hat_q beta_km_hat_q beta_lm_hat_q beta_le_hat_q beta_ke_hat_q beta_me_hat_q ///
beta_lag_ln_IND beta_lag_ln_IND_se ///
theta_k_hat_q_mean theta_k_hat_q_med theta_l_hat_q_mean theta_l_hat_q_med ///
theta_m_hat_q_mean theta_m_hat_q_med theta_e_hat_q_mean theta_e_hat_q_med  ///
theta_k_hat_q_sd theta_l_hat_q_sd theta_m_hat_q_sd theta_e_hat_q_sd rts rts_se ///
 beta_k_hat_q_se beta_l_hat_q_se beta_m_hat_q_se beta_e_hat_q_se /// 
beta_lk_hat_q_se beta_km_hat_q_se beta_lm_hat_q_se beta_le_hat_q_se beta_ke_hat_q_se beta_me_hat_q_se beta_lag_MA beta_lag_MA_se ///
perc_test se_perc_test	///
beta_lag2_ln_IND beta_lag2_ln_IND_se  beta_lag2_MA beta_lag2_MA_se
		
rename _freq Observations

save "$working/full_ProdQ_`spec'_L2", replace


